Question

4. A progressive tax policy cannot be achieved with the enactment of tax credits that are targeted to individuals based on their income level.

True/False _____________Correction to make true____________________________________________________________________________________

5.   Statutory and Economic Incidence when analyzing tax policy options are always the same thing.

True/False ________________Correction to make true____________________________________________________________________________________

6. Moving to a jurisdiction which has a lower state and local tax burden reflects the general rule for tax policy analysis.

True/False ________________Correction to make true____________________________________________________________________________________

Answer 1

4. False - this method has increasing rate of tax for increasing value or volume on which the tax is been imposed. the idea here is less tax on People who earns less and higher tax on the people who earn more classifing income earners into different slabs. This method is believed to discourage more earnings by the individual to support low growth and development intentionally.

5. Economic incidence of a tax refers to the individual or the group of individuals who ultimately bears the entire burden of taxes while the statutary incidence refers to a individual a group of individual who are responsible for giving a specific tax to the government

6.A jurisdiction which has lower state of tax burden and local tax burden may not influence much on the general tax policy analysis . The lower tax burden and lower state of tax cannot influence much in general tax policy because of its larger coverage with regards to general tax policy